Intra-National Protectionism in China: Evidence from the Public Disclosure of 'Illegal' Drug Advertising
This paper provides micro-level evidence that drug advertising regulations and inspections in China are used by local governments to discriminate against firms from outside the province.� Furthermore, the degree of discrimination varies across firms in that drug manufacturers which have closer ties with rival provinces are more likely to be targeted.� These findings demonstrate that giving provincial governments strong incentives to compete with each other may exacerbate the market distortions inherent in a partially reformed economy such as China.
|Date of creation:||17 Apr 2013|
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